Based on various researches at Oak Spring University , Jpmorgan Elect PLC 0.01p is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, wage bills are increasing, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Jpmorgan Elect PLC 0.01p
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jpmorgan Elect PLC 0.01p can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jpmorgan Elect PLC 0.01p, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jpmorgan Elect PLC 0.01p operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Jpmorgan Elect PLC 0.01p can be done for the following purposes –
1. Strategic planning of Jpmorgan Elect PLC 0.01p
2. Improving business portfolio management of Jpmorgan Elect PLC 0.01p
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jpmorgan Elect PLC 0.01p
Strengths of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jpmorgan Elect PLC 0.01p are -
Strong track record of project management in the Misc. Financial Services industry
– Jpmorgan Elect PLC 0.01p is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Misc. Financial Services
– Jpmorgan Elect PLC 0.01p is one of the leading players in the Misc. Financial Services industry in United Kingdom. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Jpmorgan Elect PLC 0.01p in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Jpmorgan Elect PLC 0.01p is present in almost all the verticals within the Misc. Financial Services industry. This has provided Jpmorgan Elect PLC 0.01p a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High switching costs
– The high switching costs that Jpmorgan Elect PLC 0.01p has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Jpmorgan Elect PLC 0.01p are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Jpmorgan Elect PLC 0.01p has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jpmorgan Elect PLC 0.01p to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Misc. Financial Services industry
– Jpmorgan Elect PLC 0.01p has clearly differentiated products in the market place. This has enabled Jpmorgan Elect PLC 0.01p to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Jpmorgan Elect PLC 0.01p to invest into research and development (R&D) and innovation.
Training and development
– Jpmorgan Elect PLC 0.01p has one of the best training and development program in Financial industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Jpmorgan Elect PLC 0.01p has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jpmorgan Elect PLC 0.01p has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Jpmorgan Elect PLC 0.01p is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Jpmorgan Elect PLC 0.01p is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jpmorgan Elect PLC 0.01p emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Jpmorgan Elect PLC 0.01p in the Financial sector have low bargaining power. Jpmorgan Elect PLC 0.01p has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jpmorgan Elect PLC 0.01p to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Jpmorgan Elect PLC 0.01p is one of the most innovative firm in Misc. Financial Services sector.
Weaknesses of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jpmorgan Elect PLC 0.01p are -
Aligning sales with marketing
– From the outside it seems that Jpmorgan Elect PLC 0.01p needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Financial Services industry have deep experience in developing customer relationships. Marketing department at Jpmorgan Elect PLC 0.01p can leverage the sales team experience to cultivate customer relationships as Jpmorgan Elect PLC 0.01p is planning to shift buying processes online.
High cash cycle compare to competitors
Jpmorgan Elect PLC 0.01p has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Jpmorgan Elect PLC 0.01p is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Jpmorgan Elect PLC 0.01p has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Misc. Financial Services industry using digital technology.
Interest costs
– Compare to the competition, Jpmorgan Elect PLC 0.01p has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, Jpmorgan Elect PLC 0.01p has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jpmorgan Elect PLC 0.01p lucrative customers.
Low market penetration in new markets
– Outside its home market of United Kingdom, Jpmorgan Elect PLC 0.01p needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at Jpmorgan Elect PLC 0.01p has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ less understanding of Jpmorgan Elect PLC 0.01p strategy
– From the outside it seems that the employees of Jpmorgan Elect PLC 0.01p don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative at Jpmorgan Elect PLC 0.01p, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Jpmorgan Elect PLC 0.01p has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Jpmorgan Elect PLC 0.01p has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Jpmorgan Elect PLC 0.01p should strive to include more intangible value offerings along with its core products and services.
Jpmorgan Elect PLC 0.01p Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jpmorgan Elect PLC 0.01p are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Jpmorgan Elect PLC 0.01p can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Jpmorgan Elect PLC 0.01p has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Jpmorgan Elect PLC 0.01p to build a more holistic ecosystem for Jpmorgan Elect PLC 0.01p products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Jpmorgan Elect PLC 0.01p can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jpmorgan Elect PLC 0.01p in the Misc. Financial Services industry. Now Jpmorgan Elect PLC 0.01p can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Jpmorgan Elect PLC 0.01p can develop new processes and procedures in Misc. Financial Services industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jpmorgan Elect PLC 0.01p can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Jpmorgan Elect PLC 0.01p to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Jpmorgan Elect PLC 0.01p can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Misc. Financial Services industry.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jpmorgan Elect PLC 0.01p can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Jpmorgan Elect PLC 0.01p can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jpmorgan Elect PLC 0.01p to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jpmorgan Elect PLC 0.01p can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Jpmorgan Elect PLC 0.01p can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Jpmorgan Elect PLC 0.01p to increase its market reach. Jpmorgan Elect PLC 0.01p will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jpmorgan Elect PLC 0.01p can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Jpmorgan Elect PLC 0.01p External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jpmorgan Elect PLC 0.01p are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Jpmorgan Elect PLC 0.01p with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jpmorgan Elect PLC 0.01p will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jpmorgan Elect PLC 0.01p in Misc. Financial Services industry. The Misc. Financial Services industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Jpmorgan Elect PLC 0.01p can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Misc. Financial Services industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jpmorgan Elect PLC 0.01p in the Misc. Financial Services sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Jpmorgan Elect PLC 0.01p needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Jpmorgan Elect PLC 0.01p needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Jpmorgan Elect PLC 0.01p can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jpmorgan Elect PLC 0.01p can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Jpmorgan Elect PLC 0.01p prominent markets.
Easy access to finance
– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jpmorgan Elect PLC 0.01p can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Jpmorgan Elect PLC 0.01p has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Jpmorgan Elect PLC 0.01p needs to keep up with the evolution of technology in the Misc. Financial Services sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Jpmorgan Elect PLC 0.01p needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Misc. Financial Services industry regulations.
Shortening product life cycle
– it is one of the major threat that Jpmorgan Elect PLC 0.01p is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Jpmorgan Elect PLC 0.01p Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jpmorgan Elect PLC 0.01p needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jpmorgan Elect PLC 0.01p needs to make to build a sustainable competitive advantage.